DBRS Publishes Updated Corporate Real Estate Methodology

DBRS has today published an updated corporate methodology entitled “Rating Entities in the Real Estate Industry,” which supersedes the methodology dated October 3, 2013. DBRS has determined that no ratings will change as a result of this update.

While the update clarifies certain details, changes overall are not substantive. The main clarification to the methodology is as follows. The business risk assessment and financial risk assessment for real estate entities are now blended to give an unsecured debt rating, rather than an issuer rating. In the past, DBRS has used issuer ratings as placeholders for the unsecured debt rating for rating entities using the “Rating Entities in the Real Estate Industry” methodology, even when no such debt was outstanding. At this time, there are no issuer ratings outstanding for real estate entities that use this methodology and none are expected given the change in the methodology described above.

DBRS’s rating definitions and the terms of use of such ratings are available at www.dbrs.com.

DBRS’s methodologies and criteria are available by contacting us at info@dbrs.com.